by Anna Scott

Just two months after its heralded debut, the Downtown Ralphs already ranks in the top 15% of the chain’s 262 Southern California supermarkets, according to a company spokesman. The quick success is spurring hope that other supermarkets and retail outlets will arrive sooner than expected in the effort to serve the burgeoning residential neighborhood.

The 50,000-square-foot Ralphs has sales that put it in the top 15% of the chain’s 262 Southern California stores. Photo by Gary Leonard.

“It has far, far exceeded our estimate of the business that we would do,” said Charles Barfield, vice president of public relations for Ralphs Grocery Co. “The store is doing much better than any of us anticipated.”

The 50,000-square-foot South Park store, on the ground floor of the Market Lofts at Ninth and Flower streets, serves approximately 2,000 customers each day, employees say, and consistently exceeds projected weekly revenues by more than $100,000.

While Ralphs representatives would not disclose exact figures, Efrain Ramirez, Downtown Ralphs’ manager of operations, said he expects the store eventually to compete with the chain’s top, $1 million-a-week outlets.

The Westwood Ralphs, Ramirez said, “was doing about $400,000 when they opened and now they’re doing $1 million a week. That’s what we’re aiming for.

“With all the condos going up around us,” he added, “it shouldn’t take long.”

Some of the supermarket’s success might be attributable to its diverse customer base, which includes local residents, office workers, USC students and guests of the nearby Bonaventure and Wilshire Grand hotels, said Ramirez.

Peak hours for the store are lunchtime, employees say, while Barfield says that the service deli is “by far the busiest in our chain.” That came as a surprise to management.

“To have a two-and-a-half to three-hour time where you’re 10 people deep on the service deli,” said the store’s wine steward, Mike Berger, “that’s something we haven’t seen in a long time.”

A Second Ralphs?

The success of Ralphs, some say, could speed up the arrival of other Downtown Los Angeles grocery stores.

“Nothing spurs success like success,” said Carol Schatz, president and CEO of the Downtown Center Business Improvement District. “I think the fact that they’re doing so much better than their expectations will spur the interest of a number of other chains who I know are already hovering.”

She declined to name names, but said, “There are a couple that aren’t yet hovering that I think will now start looking seriously at Downtown because of Ralphs’ success.”

The next market to arrive could be Louie Restaurant and Gourmet Market, an Italian-themed grocer slated to open in the Brockman loft building at Seventh Street and Grand Avenue next year. Developers of the Grand Avenue project and the L.A. Central project adjacent to L.A. Live have reportedly explored including high-end markets in their developments, although no details have been confirmed.

In the meantime, Ralphs is considering opening a second location Downtown, Barfield said.

Although Trader Joe’s has long been courted by Downtown’s residential and business communities, company spokeswoman Alison Mochizuki told Los Angeles Downtown News earlier this year that a Downtown store was not in Trader Joe’s two-year plan, though “things change all the time.” Mochizuki said last week that the status “remains the same.”

Grey Goose and Johnnie WalkerOn a recent weekday afternoon, every table in the supermarket’s cafe-style dining nook was filled with customers lunching on sushi, salad, ready-made wraps and fresh turkey, tri-tip and prime rib sandwiches from the store’s deli. Meanwhile, shoppers ranging from young singles to moms pushing strollers roamed the aisles.”I like it here because it’s new and there’s variety,” said Lorina Duran, who works for the LAUSD and takes the DASH from Beaudry Avenue and Sixth Street to the store for lunch once a week.

In addition to prepared foods, Berger said, high-end liquors are also top sellers.

“For the USC kids I see shopping, Grey Goose Vodka seems to be the order of the day,” he said, adding with a laugh, “I don’t know if they’re using their parents’ credit cards or their own money, but they have very good taste.”

Six to eight $200 bottles of Johnnie Walker Blue Label typically leave the market’s shelves each week, said Berger, and the Downtown store is one of only a few Ralphs that sells more than one or two $250 bottles of Grand Pétron tequila a year.

“I have bottles of wine that are $400 and $500 in my cellar, and there is a market for them,” said Berger. “We seem to be capturing a premium market share.”

Likewise, Berger said, the store’s customers generally gravitate toward higher-quality food items, though no single product stands out.

“The person who’s buying Grey Goose and a bottle of wine that’s $20-plus is also buying a filet mignon, a pork roast, fresh organic vegetables,” said Berger. “They are very specific about the quality they want.”

The store, one of the chain’s upscale Fresh Fare gourmet markets, recently stepped up its prepared food selection and high-end offerings, even holding regular wine tastings.

The market also recently expanded its hours from 5 a.m. until 2 a.m. instead of midnight. The move is expected to be permanent.

Bonus BenefitsThe Downtown Ralphs opened July 20 to fanfare and a crowd of thousands. It was interpreted by many as a hard-won acknowledgement of Downtown’s thriving residential community.Now, the store’s unexpected level of success, many hope, could provide a push not just for more grocery stores, but also for other neighborhood-serving amenities Downtown.

“I would love to see a local hardware store, and we’re looking at an art supply store around the Gallery Row area,” said Russell Brown, president of the Downtown Los Angeles Neighborhood Council.

However, not everyone is bullish on a quick change. Gregory Freeman, vice president of consulting for the Los Angeles County Economic Development Corp., said that despite Ralphs’ success, it could take time to see a feeding frenzy of retailers converging on Downtown.

“A lot of people’s opinions about Downtown are out of date,” he said. “There’s been a real reluctance to commit to Downtown, but the market’s here.

“I think with the Grand Avenue project and L.A. Live and the continued transformation of Downtown, things look pretty positive,” he continued. “On the other hand, given what’s going on in the housing market, Downtown may not be immune and there could be some rockiness in the short term.”

Though it may take a while until large chain stores flock to the area, some observers, including Schatz, predict a steady stream of new arrivals.

“I think we’re going to see all kinds of new retail, chains and independent, opening up Downtown,” she said. “I think we’ll see more furniture stores and dry cleaners, and all the other amenities you would expect to find in a normal neighborhood.”

Contact Anna Scott at anna@downtownnews.com.